ECB Annual Report on supervisory activities

In 2016 the <strong>ECB</strong> initiated MoU negotiations with ten third country supervisory
authorities. The objective is to facilitate the performance of the respective
supervisory tasks. To this end, the MoUs are intended to cover, inter alia, information
exchange, cooperation in ongoing supervision as well as in emergency situations,
the conduct of on-site inspections and internal models investigations.
In 2016 and early 2017, the <strong>ECB</strong> entered into MoUs with two third country
supervisory authorities, one on supervision of credit institutions and one on the
exchange of information regarding systemically important institutions.
Colleges of supervisors
Colleges of supervisors are key to
coordinating the supervision of
cross-border banking groups
Colleges of supervisors are permanent yet flexible coordination structures that bring
together the competent authorities involved in supervising cross-border banking
groups. Colleges play an important role for SSM banks with a presence in non-euro
area countries.
In 2016 the <strong>ECB</strong> strengthened the performance of these colleges with the aim of
making the European framework for information exchange, joint risk assessments,
and joint decisions on capital and liquidity requirements more effective, in
accordance with CRD IV.
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Colleges of supervisors
in which the <strong>ECB</strong>
participates
In its capacity as consolidating supervisor, <strong>ECB</strong> Banking Supervision is responsible
for the organisation and functioning of 29 EU colleges. These colleges comprise the
relevant EU members, the EBA and, as observers, those authorities that supervise
the material subsidiaries and branches that each banking group has in third
countries. These include the most relevant supervisory authorities in the global
banking and financial markets.
For each significant institution for which the <strong>ECB</strong> is the consolidating supervisor,
JSTs have established the relevant processes and procedures to ensure that each
college functions properly. 33
As host supervisor of significant institutions in the euro area that are headquartered
in non-participating EU Member States (seven banking groups), <strong>ECB</strong> Banking
Supervision has actively contributed to the colleges of the cross-border banking
groups, through appropriate JST representation.
For other internationally active significant institutions in the euro area, in 2016 <strong>ECB</strong>
Banking Supervision acted as consolidated supervisor for four banking groups that
are headquartered in participating Member States but which only have material
cross-border activity outside the EU. At the same time, <strong>ECB</strong> Banking Supervision
contributed as host supervisor to the colleges of five cross-border banking groups
headquartered in third countries and with subsidiaries which are significant
institutions in the euro area.
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As required by Commission Delegated Regulation (EU) 2016/98 and Commission Implementing
Regulation (EU) 2016/99.
<strong>ECB</strong> <strong>Annual</strong> <strong>Report</strong> on supervisory activities 2016 − The SSM as part of European and
global supervisory architecture 44